Car Insurance for Young Drivers

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Written by Kayla Jane Barrie Updated on October 17, 2025 min read

Getting young drivers car insurance (aged 16-24)

If you are under the age of 25, it can be challenging to be in the "young driver insurance" category. Insurance rates are higher because you are seen as a greater threat to road safety compared to an experienced driver. Your first step toward getting a better price is to compare car insurance quotes.

Navigating the world of car insurance as a young driver can be overwhelming. High premiums, confusing jargon, and countless options make it difficult to find the best deal. Let us help! We'll guide you through the process of comparing car insurance quotes, ensuring you get the most affordable coverage tailored to your needs. Our expert advisors are ready to assist you.

What you need to know about young drivers car insurance:

The average rate for a young driver (under 25) is $2,810.
Brampton has the highest average annual car insurance premium for young drivers at $3,728. Burlington has the lowest average annual premium at $2,113.
On average, young males pay more for car insurance than females, with monthly premiums around $246 for men and $216 for women.
Always keep in mind individual premiums vary greatly based on personal factors, so comparing options from multiple insurers is essential to find the best rate.
As young drivers progress through Ontario’s Graduated Driver's Licensing System, they may see their rate lower if they keep a clean driving record.

Who is considered a young driver for car insurance?

For car insurance purposes, a "young driver" typically means someone between the ages of 16 and 24. Insurance companies consider this age group high-risk because statistically, they're more likely to have accidents than older, more experienced drivers. This higher risk translates to higher insurance premiums.

It's important to note that the exact definition of "young driver" can vary slightly depending on the province and may also consider driving experience beyond just age, such as how many years you have been licensed.

If your child has a learner's permit, they don't need to be added to your insurance policy. While they're driving with a licensed adult who meets their permit's requirements, they're covered under that adult's insurance policy.

How to compare young drivers car insurance quotes

Complete these quick and simple steps to compare free quotes in just a couple of minutes.

1) Start your quote

Enter your postal code and some basic information.

2) Enter your driving details

Provide your driving and vehicle information.

3) Compare quotes

See rates from the leading companies.

Choose your policy

Choose the lowest rate. Confirm the details with our experts and buy your insurance.

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5-star car insurance for young drivers

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2025-10-01

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How much is insurance for a young driver?

New driver insurance costs have seen some fluctuation in recent years. While the average annual premium hit $3,008 in 2024, it has dropped to $2,564 in 2025. This decrease follows a period of relatively stable costs, averaging $2,810 annually between 2022 and 2025.

It's important to remember that these are averages; your individual premium will depend on factors like your age, driving record, location, and the type of vehicle you drive.

Year	Average annual premium
2025	$2,564
2024	$3,008
2023	$2,879
2022	$2,790
Average rate (2022-2025)	$2,810

Young driver rates by driver types

Car insurance premiums vary significantly depending on driver demographics and driving record. Young drivers and new drivers pay the most, with annual premiums exceeding $2,000, while mature and senior drivers (50+) enjoy the lowest rates at $149 monthly for coverage.

Gender also plays a role, with males generally paying $246 monthly compared to females who can pay around $216 monthly.

Marital status and driving record have a substantial impact, with clean records resulting in lower premiums and incidents like accidents, tickets, or cancellations significantly increasing costs.

	Premium	Monthly
Driver type
Young drivers (25 and under)	$2,831	$236
New drivers	$2,243	$187
Middle age (26 - 50)	$2,381	$198
Mature/senior drivers (50+)	$1,785	$149
Demographics
Male	$2,949	$246
Female	$2,590	$216
Married	$2,811	$234
Single	$2,848	$237
Driving record
Clean driving record	$2,813	$236
1 ticket within first year	$3,054	$255
1 accident within first year	$3,179	$265
1 cancellation within first year	$3,087	$257
1 suspension within first year	$2,837	$236

Young driver rates by city

Car insurance costs for young drivers in Ontario vary significantly by city. While some cities like Burlington and Kitchener offer relatively lower average annual premiums (around $2,100-$2,300), others such as Brampton and North York have substantially higher rates, exceeding $3,000 annually.

City	Avg premium	Monthly
Ontario	$2,831	$236
Toronto	$2,639	$220
Ottawa	$2,227	$186
Hamilton	$3,147	$262
Mississauga	$2,976	$248
London	$2,645	$220
Kitchener	$2,342	$195
Brampton	$3,728	$311
Guelph	$2,584	$215
Markham	$2,964	$247
Barrie	$2,996	$250
Oshawa	$2,492	$208
Burlington	$2,113	$176
St Catharines	$2,886	$241
Newmarket	$2,511	$209
Richmond Hill	$3,002	$250
Milton	$3,006	$251
Cambridge	$2,885	$240
Oakville	$2,996	$250
Whitby	$2,667	$222
Ajax	$2,919	$243
North York	$3,440	$287

What are the best ways to get lower car insurance rates for young drivers?

This involves leveraging your parents' insurance plan initially, swiftly completing your driver's license and training, and building a clean driving record and good academic standing to qualify for discounts.

Further cost savings can be achieved by becoming an occasional driver, choosing the right car and insurance coverage, exploring alumni rates and bundling policies, and ultimately, consulting with insurance professionals to find the best rates tailored to your individual circumstances.

Here are some helpful tips for how to get cheaper car insurance premiums for younger drivers:

Start on your parent's plan: This is a more cost-effective option than taking out your own insurance policy.
Get your full licence as quickly as possible: Work through the licensing process as quickly as possible.
Complete driver training: Complete driver training with a government-approved driving school.
Build insurance history: Become an occasional driver on your parent’s policy so you can build your insurance history.
Obey the road rules: Keep your record clean (no texting, no speeding, no drinking, no convictions).
Get good grades: Maintain excellent grades to qualify for the good student discount.
Get the right coverage: Choose a car and insurance package for young drivers.
Ask about alumni rates: You could qualify for savings by being a member of a particular university, professional association, or other organization.
Bundle: If you do not live with your parents, bundle your car and home insurance with your auto plan.
Choose the right vehicle: The car you drive matters. Choose an insurance-friendly vehicle to reduce how much you pay.
Use an insurance advisor: Speak with our insurance professionals. We'll help you find the best rates based on your driving and insurance needs.

Young drivers car insurance FAQs

Why is car insurance more expensive for young drivers?

Car insurance is more as young drivers are inexperienced behind the wheel. Novice drivers account for about 25% of all collisions. Because of this, they are more likely to get into an auto accident. From an insurer's perspective, if you are more likely to file a claim, then it is a greater threat for them to insure you. Your rates go up to account for the higher likelihood of a claim. Some young drivers require high-risk insurance if they get a ticket or make a claim.

How does car insurance work if I have a young driver in my home?

Any individual with a drivers licence living in your household, including young or teenage drivers should be added to your policy as a secondary driver. If a young driver living in your home has their own coverage then this is not required.

Who are the best insurance companies for a young driver?

There isn't one best place to get car insurance for young drivers. It depends on your situation, driving habits, and needs. Many insurers offer great options for young drivers. Often, the best insurer is your parents. Going on their policy is a good first step to gaining experience as an insured young driver. Also, consider insurers offering usage-based insurance plans.

How much will my car insurance go up if I add my son/daughter?

Your car insurance rates will increase when you add a young driver to your coverage. How much will depend on many factors:

Do they have their own car?
Are they a safe driver?
Do they have a full g licence?
Have they completed driver's training?
Do they have a clean driving record?
Do you have multiple cars insured?

In some instances, your rates can go up by 100% or more. Every situation is different.

Will insurance drop when young drivers turn 25?

Yes, in most cases insurance does down at age 25. Drivers under 25 will see a rate drop if they have a clean record and history of insurance. The more experience you gain when you are younger, the better. However, if you are a young new driver from another country, insurers may consider you a first-time driver, resulting in a higher insurance premium.

Young drivers can save on car insurance by using a driving app

Young man using a driving app car leaning on car

There are many ways teenage and young drivers can lower their car insurance costs. Using a driving app is one of the best ways, especially if you are a first-time driver just getting insured and you are a good driver.

Usage-based insurance (UBI) or telematics is a great option if you:

Are between the age of 16-24
Have little or no driving history
Have no insurance history
Have completed a certified drivers training course

Then UBI could be the best way for you to get more affordable rates.

It monitors braking, acceleration, and kilometres driven. It’s the most cost-effective product for young drivers to save and allows you to build your driving and insurance history.

Benefits of using the app include:

Save up to 10% instantly by signing up.
Get up to 25% off with proven safe driving results.
Easy to set up with a ThinkInsure advisor.
Only a 6-9 month monitor trial period.
There is no risk. Premiums will not increase based on usage.

Save on car insurance by completing a young driver training course

When a young driver completes a government-approved driving program, they can save anywhere from 10-25% on premiums. Just provide your insurer with proof that you completed the course.

Learn and practice skills with a qualified instructor to build your confidence

When you take a driving course, you learn both practical in-car skills and in-class knowledge. You gain hours of training with a qualified teacher who is equipped with the most up-to-date knowledge on driving issues and challenges.

Get young drivers auto insurance quotes right now

Finding affordable car insurance for young drivers can be challenging. But there are still savings opportunities. Speak with a ThinkInsure advisor today to get a quote for young driver insurance and compare policy options from multiple companies.

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Disclaimer

Estimated car insurance quote data is from Ontario drivers who completed an online car insurance quote on Thinkinsure.ca. Drivers have G licence, clean record, for full coverage, $1 million liability limit, $1,000 comprehensive and collision deductible, and applicable discounts. Premiums can vary based on your driving and insurance history.

Kayla Jane Barrie

Digital Content Writer

Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism.

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Young Drivers Car Insurance

Compare quotes for young drivers car insurance from the top providers in Canada and find a lower rate.

Get young car insurance quotes from the leading providers

Getting young drivers car insurance (aged 16-24)

What you need to know about young drivers car insurance:

Who is considered a young driver for car insurance?